The cost of living in Dallas is an average of $62,672 annually. It is the most expensive city in Texas but is still well within the national average cost of living. 

Here’s a breakdown of possible expenses.

Housing

Housing costs in Dallas are above the national average and are the highest in the state. Average monthly rent sits at $1,568, which is 3% higher than the US average and 22% higher than the rest of Texas.

Unfortunately, the rent won’t stay down for long because of Texas’ lack of any rent stabilization laws. 2022’s rent increase was at 6.8% from January to November, while in 2021, it was at 15.3%.

There are plenty of housing options available in Dallas for all income brackets, and most apartments are very affordable for Dallas’ low-income earners.

The Dallas Housing Agency offers affordable housing for low-income residents, giving them the option to rent fully-furnished homes for just over $1,000 a month.

Find out what to expect to pay for rent in the table below.

Utilities

The average Dallas utility bill amounts to $300/month, including water and electricity, internet, phones, and home maintenance. 

When compared to other major cities, Dallas utilities are expensive. You can expect to spend nearly twice as much as the national average, which is at $170/month.

If you want to know what to expect to pay for utilities, check the table below.

Transportation

Dallas’ buses and trains let you roam around the city for $2.50 for one-way trips or $6 for a day pass. Streetcars let you ride for a dollar, but are much slower and have limited routes.

Gas is cheap in Dallas, only costing $0.91/L on average, lower than the national average for gas ($1.17/L).

Dallas is a very commuter-friendly county. The Dallas Area Rapid Transit system covers the entirety of Dallas and offers cheap day passes for unlimited rides.

Aside from the DART buses and trains, you can also find streetcars roaming around and offering one-way rides for a dollar.

Dallas is also a very walkable city, thankfully, so you can opt out of public transportation if you have the time and energy.

If you’re bringing a car or plan on using a rental, gas prices are cheaper compared to other major cities. 

Here are the average costs for each mode of transportation in Dallas:

Education

Dallas education is among the cheapest in the country, especially for college students. Out-of-state students can finish their education at just $18,504 per year, much lower compared to the national average of $27,091.

Preschools are cheap and often fit within the $7,000 – $8000 range. In comparison, the national average sits at $10,000 per year.

Private elementary and secondary schools are affordable and top-notch. Middle-class parents can easily afford to send their kids, but low-income earners should probably stick to public institutions.

Dallas colleges are consistently ranked among the best in the country too, and at lower tuition rates. 

The University of Texas in Dallas, for example, charges tuition for as low as $11,000/year.

Groceries

Groceries in Dallas cost an average of $275/month for a single person. Compared to the national average of $324 for single people, Dallas isn’t too expensive.

To save money on groceries, look for coupons and discounts posted in newspapers and online news sites. 

While it would be impossible to list everything a grocery store offers, here are the prices for some of the most common products:

Fitness

Gym costs in Dallas vary depending on the area, but the overall average comes down to $40/month. If you’re in busier areas like Downtown Dallas, the average shoots up to $80/month.

If you want to save money on fitness, Dallas is a large city where you can easily find many public places like parks and jogging trails to get yourself moving. 

But if you prefer to go to the gym, check out the average prices below so you know what to expect.

Health

Dallas annual healthcare costs reach an average of $5,076/year for the average household of two adults and three children or roughly 8.1% of the earners’ annual income.

Dallas has some of the most expensive medical bills in the country. Medical debt is much more common and is often hundreds of dollars more expensive per person than it is in other areas.

While New York debtors owe an average of $400, Dallas debtors owe nearly $1,000. Throughout the whole county, 22.5% of residents with credit reports have medical debt.

Hospitalization can cripple your finances very quickly. Local and nonprofit hospitals charge an average of $2,500 a day, while for-profit hospitals charge $1,803.

Private hospitals are especially expensive for surgeries and complicated procedures, charging up to 12 times higher than the national average. 

To help you save money, roughly 30% of the property tax that Dallas collects goes to paying off patients’ medical bills in public hospitals. 

Further, many residents have gotten used to reserving hospital visits for life-threatening emergencies only. 

Here are the average healthcare prices without insurance for the most common medical services:

Entertainment

Dallas entertainment is cheap, and you can easily have a fun night out for just over $30. 

Here’s what you can expect to pay.

Dallas residents spend an average of $62,672 a year, 4.8% or $3,008 of which goes to entertainment. The most common destinations are bars, clubs, theaters, art centers, and cinemas.

When major sports teams like the Texas Rangers and Dallas Cowboys play in Dallas, folks run to the stadiums to watch them live for $25 to $60 a ticket.

Taxes

Dallas’ taxes are 8.25% in sales and $0.6246 per $100 in property taxes. Along with the rest of Texas, there is no state income tax.

For the average Dallas salary of $65,247/year, 14.15% goes to federal income taxes while 7.65% goes to FICA, leaving a semi-monthly after-tax pay of $2,126.

Texas has no income tax, so you can expect Dallas to not have one either. To compensate though, the county imposes local and state sales taxes and property taxes.

Dallas charges 2% on products while the state charges 6.25%, adding up to a total of 8.25%. These rates are among the highest in the country.

To help you save money, there are three tax-free weekends in Texas: the emergency preparation sales tax holiday, Memorial Day weekend, and the back-to-school sales tax holiday.

The emergency preparation sales tax holiday happens in April to help prep for the hurricane season. 

Memorial Day weekend gives sales tax exemptions to select Energy Star appliances, while the back-to-school holiday happens on the first week of August.

If you plan on purchasing a property in Dallas, different neighborhoods have different property tax rates, meaning homes are accessible to nearly everyone. 

Grapevine, Highland Park, and University Park are the cheapest neighborhoods, offering rates at less than $0.3 per $100 in valuation.

Average Monthly Cost of Living in Dallas for a Single Person

Singles can afford to live in Dallas for as little as $1,550 a month.

Here are some estimates on the cost of living, assuming only the bare necessities (food, accommodation, transportation) are consumed.

Average Monthly Cost of Living in Dallas for Couples

Couples with no other household members can expect to spend at least $1,852 a month. 

Average Monthly Cost of Living in Dallas for a Family of 3

A family of three with one child can expect to spend at least $2,903 a month.

Is Dallas expensive to live in?

Dallas is not expensive to live in despite its cost of living being higher than the state and national averages. 

Most services and bills are affordable for low-income earners. 

For reference, here’s a comparison between the cost of living in Dallas and the state and national average.

What is the average salary in Dallas?

The average salary in Dallas is $31.37/hr or $65,247 a year. Dallas wages have so far increased from January 2019 to November 2022 by 12.8%.

What is a comfortable salary in Dallas? 

A salary of at least $60,320 a year or $29/hr is enough to live comfortably in Dallas for singles and couples with kids. Single parents and sole breadwinners need an average of $36/hr.

For more specific households, refer to the table below.